UNEP/OzL.Pro/ExCom/77/5

UNITED
NATIONS / EP
/ United Nations
Environment
Programme / Distr.
GENERAL
UNEP/OzL.Pro/ExCom/77/5
3 November 2016
ORIGINAL: ENGLISH

EXECUTIVE COMMITTEE OF
THE MULTILATERAL FUND FOR THE
IMPLEMENTATION OF THE MONTREAL PROTOCOL
Seventy-seventh Meeting

Montreal, 28 November - 2 December 2016

UPDATE ON THE STATUS OF IMPLEMENTATION OF THE 2016-2018 CONSOLIDATED BUSINESS PLAN OF THE MULTILATERAL FUND

1.At the 75th meeting, the Executive Committee endorsed the consolidated business plan of the Multilateral Fund for 2016-2018. In response to decision 75/22(b) and (c), the Secretariat adjusted the consolidated 2016-2018 business plan[1], which was further adjusted pursuant to decision76/3(c), as shown in Table1.

Table 1. Resource allocation of the 2016-2018 consolidated business plan of the Multilateral Fund (US$)

Description / 2016 / 2017 / 2018 / Total / Approved MYAs after 2018
Required for compliance
Approved multi-year agreements (MYAs) / 22,267,577 / 11,922,133 / 16,645,965 / 50,835,675 / 13,365,125
HCFC production phase-out management plan (HPPMP) preparation – stage I / 107,000 / 0 / 0 / 107,000
HPPMP – stage I / 0 / 0 / 532,500 / 532,500
HPPMP – stage II / 0 / 21,874,286 / 21,874,286 / 43,748,571
HCFC phase-out management plan (HPMP) preparation – stageII / 1,814,755 / 408,336 / 3,611,279 / 5,834,369
HPMP preparation – stage III / 0 / 0 / 22,600 / 22,600
HPMPs and HPMP investment projects – stage I / 564,098 / 2,453,989 / 330,800 / 3,348,887
HPMPs and HPMP investment projects – stage II / 114,913,217 / 109,823,665 / 158,190,630 / 382,927,512
HPMP verification / 588,600 / 588,600 / 588,600 / 1,765,800
Low global-warming potential (GWP) alternative demonstration projects / 7,674,500 / 0 / 0 / 7,674,500
Sub-total / 147,929,746 / 147,071,009 / 201,796,660 / 496,797,415 / 13,365,125
Standard costs
UNEP compliance assistance programme (CAP) / 10,837,857 / 11,162,993 / 11,497,882 / 33,498,732
Core unit (UNDP, UNIDO, World Bank) / 5,835,000 / 5,875,845 / 5,916,976 / 17,627,821
Institutional strengthening (IS) / 11,303,609 / 9,918,458 / 11,210,431 / 32,432,498
Secretariat/Executive Committee/Monitoring and Evaluation costs (excluding Canadian counterpart funding) / 5,629,692 / 5,759,245 / 5,892,686 / 17,281,623
Treasurer / 500,000 / 500,000 / 500,000 / 1,500,000
Sub-total / 34,106,158 / 33,216,541 / 35,017,975 / 102,340,673
Grand total / 182,035,904 / 180,287,550 / 236,814,634 / 599,138,088 / 13,365,125
BY AGENCY
Bilateral / 2,349,314 / 2,501,711 / 6,945,256 / 11,796,281
UNDP / 45,514,953 / 29,260,832 / 58,554,541 / 133,330,325
UNEP / 26,011,401 / 21,415,427 / 27,822,360 / 75,249,188
UNIDO / 64,633,448 / 59,338,893 / 73,389,231 / 197,361,572
World Bank / 36,808,496 / 60,922,843 / 63,121,960 / 160,853,299
HPMP verification reports* / 588,600 / 588,600 / 588,600 / 1,765,800
Secretariat/Executive Committee/Monitoring and Evaluation costs (excluding Canadian counterpart funding) / 5,629,692 / 5,759,245 / 5,892,686 / 17,281,623
Treasurer / 500,000 / 500,000 / 500,000 / 1,500,000

* Funding for the preparation of HPMP verification reports for low-volume-consuming countries is approved by the Executive Committee on an annual basis.

Status of implementation of the 2016 business plans

2.Table 2 sets out the approvals at the 76th meeting (amounting to US$30,160,016), the submissions by agency to the 77thmeeting (as at 21 October 2016), and the balance of funds from projects in the 2016 business plans.

Table2.2016 consolidated business plan, approvals of the 76th, and submissions to the 77thmeetings, and balance by agency (US$)*

Budget items / Total value in business plan / 76thmeeting approvals / 77thmeeting submissions** / Balance (above)/below business plan levels
Bilateral agencies / 2,349,314 / 1,233,353 / 5,802,857 / -4,686,896
UNDP / 45,514,953 / 9,986,962 / 74,498,925 / -38,970,934
UNEP / 26,011,401 / 3,796,796 / 19,093,788 / 3,120,817
UNIDO / 64,633,448 / 10,427,960 / 46,811,956 / 7,393,532
World Bank / 36,808,496 / 4,714,945 / 16,089,392 / 16,004,159
HPMP verification reports / 588,600 / 0 / 268,800 / 319,800
Sub-total (agencies) / 175,906,212 / 30,160,016 / 162,565,718 / -16,819,522
Secretariat/Executive Committee/Monitoring and Evaluation costs (excluding Canadian counterpart) / 5,629,692 / 5,629,692
*** / 0
Treasurer / 500,000 / 500,000 / 0
Sub-total (standard costs) / 6,129,692 / 0 / 6,129,692 / 0
Total / 182,035,904 / 30,160,016 / 168,695,410 / -16,819,522

* Including core unit costs.

** As at 21 October 2016. Funding requests associated with new stages I and II of HPMPs were still under discussion between the Secretariat and the relevant bilateral and implementing agencies.

*** Estimated. See Approved 2015, 2016 and 2017 and proposed 2018 budgets of the Fund Secretariat (UNEP/OzL.Pro/ExCom/75/82).

3.The total funding submitted by bilateral and implementing agencies to the 77th meeting (as at 21October2016) amounts to US$162,565,718, which is US$33,655,989 above the value for these activities in the consolidated 2016 business plan. This amount includes US$11,179,108 associated with the following activities which were not in the 2016 business plan:

(a)Tranches of stage I of HPMPs for Grenada (UNIDO), Paraguay (UNDP) Saudi Arabia (UNEP), Senegal (UNEP and UNIDO) and South Sudan (UNDP)[2]; and

(b)Tranches of stage II of HPMPs for China (Germany, Japan, UNDP (overarching strategy)), Jordan (World Bank and UNIDO), Malaysia (UNDP), Mexico (Spain) and Uruguay (UNDP (foam and monitoring))[3].

4.Table 3 presents the value for activities[4] included in the consolidated 2016 business plan but not submitted to the 77thmeeting. The list of these activities is contained in Annex I to the present report.

Table 3. Activities in the consolidated 2016 business plan not yet submitted

Agency / Value (US$)
Bilateral / 400,000
UNDP / 2,613,384
UNEP / 4,580,665
UNIDO / 10,055,389
World Bank / 2,268,676
Total / 19,918,114

Resource allocation for 2015-2017 triennium

5.The resources approved by the Parties to the Montreal Protocol for the 2015-2017 triennium[5] total US$507,500,000. Of this amount, US$191,476,898 had been allocated to activities approved in 2015, with US$316,023,102 remaining for 2016 and 2017.

6.The value of the activities approved at the 76thmeeting, submitted to the 77th meeting, planned in the 2017 adjusted business plans,and the operation of Secretariat/Executive Committee/Monitoring and evaluation and Treasurer for 2016 and 2017, amounts to US$366,830,932, exceeding the resources available by US$50,807,830 as shown in Table 4. The deficit could be further increased if the value of the interest to be accrued and the contributions to be paid are less than that indicated in the replenishment (i.e. US$491.5million[6]).

Table 4: Resource allocation for 2016 and 2017 (US$)

Description / 2016 / 2017 / Total
Revised resource allocation (a)* / 162,223,102 / 153,800,000 / 316,023,102
Project costs
Approvals at the 76th meeting / 30,160,016 / 30,160,016
Submissions to the 77th meeting / 162,565,718 / 162,565,718
Business plans values / 161,716,261 / 161,716,261
Subtotal project costs (b) / 192,725,734 / 161,716,261 / 354,441,995
Recurrent costs
Secretariat/Executive Committee/Monitoring and evaluation / 5,629,692 / 5,759,245 / 11,388,937
Treasurer / 500,000 / 500,000 / 1,000,000
Subtotal recurrent costs (c) / 6,129,692 / 6,259,245 / 12,388,937
Total costs (d) = (b) + (c) / 198,855,426 / 167,975,506 / 366,830,932
Balance (e) = (a) – (d) / -36,632,324 / -14,175,506 / -50,807,830

(*) Resources available from the 2015-2017 replenishment approved by the Parties.

7.An addendum to the present document will be issued prior to the 77thmeeting to address, inter alia, the resource allocation for 2016 and 2017 based on recommendations provided in documents submitted to the 77th meeting.

Forward commitments

8.The addendum will also assess more accurately forward commitments associated with new stagesI and II of HPMPs submitted to the 77thmeeting.

RECOMMENDATIONS

9.The Executive Committee may wish to note:

(a)Theupdate on the status of implementation of the 2016-2018 consolidated business plan of the Multilateral Fund contained in document UNEP/OzL.Pro/ExCom/77/5; and

(b)That an addendum will be issued to address resource allocation for 2016 and 2017 based on recommendations provided in documents submitted to the 77thmeeting and forward commitments associated with new stagesI andII of HCFC phase-out management plans.

1

UNEP/OzL.Pro/ExCom/77/5

Annex I

Annex I

REMAINING ACTIVITIES REQUIRED FOR COMPLIANCE (2016)

Country / Agency / Type / Chemical / Sector and Subsector / Value ($000) 2016 / ODP 2016
Albania / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 26 / 0.2
Algeria / UNEP / INS / SEV / Institutional Strengthening / 329
Algeria / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 155 / 1.0
Algeria / UNIDO / PRP / HCFC / FOA-Rigid PU foam - Preparation of Stage II HPMP / 54 / 0.0
Algeria / UNIDO / PRP / HCFC / REF-Manufacturing - Preparation of Stage II HPMP / 54 / 0.0
Algeria / UNIDO / PRP / HCFC / REF-Servicing - Preparation of Stage II HPMP / 64 / 0.0
Antigua and Barbuda / UNEP / PHA / HCFC / Stage 2 - HCFC Phase-out Management Plan (implementation) / 45
Argentina / World Bank / PHA / HCFC / FOA - Rigid PU foam - HPMP Stage II / 1,202 / 17.7
Bahamas (the) / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 66 / 0.3
Bahamas (the) / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 39 / 0.2
Bahrain / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 141 / 1.0
Bangladesh / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 20 / 0.2
Bangladesh / UNEP / PRP / HCFC / Stage 2 - HCFC Phase-out Management Plan (preparation) / 34
Barbados / UNDP / PHA / HCFC / Stage I HPMP / 41 / 0.2
Barbados / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 54 / 0.2
Belize / UNDP / PHA / HCFC / Stage I HPMP / 7 / 0.0
Belize / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 108 / 0.4
Burundi / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 40 / 0.3
Burundi / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 87 / 0.6
Cameroon / UNIDO / PHA / HCFC / REF-Assembly and charging of refrigeration equipment - HPMP Stage II / 755 / 8.1
Cameroon / UNIDO / PHA / HCFC / REF-Servicing - HPMP Stage II / 374 / 4.0
Central African Republic (the) / UNEP / INS / SEV / Institutional Strengthening / 85
Central African Republic (the) / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 62 / 0.4
Cote d'Ivoire / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 168 / 1.8
Cote d'Ivoire / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 495 / 5.6
Democratic People’s Republic of Korea (the) / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 102 / 2.0
Democratic People’s Republic of Korea (the) / UNIDO / PRP / PRO HCFC / PRO - Stage I / 107 / 0.0
Democratic People’s Republic of Korea (the) / UNIDO / PRP / HCFC / REF-Manufacturing - Preparation of Stage II HPMP / 30 / 0.0
Democratic People’s Republic of Korea (the) / UNIDO / PRP / HCFC / REF-Servicing - Preparation of Stage II HPMP / 45 / 0.0
Democratic Republic of the Congo (the) / UNDP / PHA / HCFC / Stage I HPMP / 26 / 0.3
Democratic Republic of the Congo (the) / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 27 / 0.3
Democratic Republic of the Congo (the) / UNEP / PHA / HCFC / Stage 2 - HCFC Phase-out Management Plan (implementation) / 211 / 2.4
Democratic Republic of the Congo (the) / UNEP / PRP / HCFC / Stage 2 - HCFC Phase-out Management Plan (preparation) / 68
Dominica / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 74 / 0.0
Equatorial Guinea / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 40 / 0.2
Equatorial Guinea / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 82 / 0.5
Gabon / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 57 / 1.0
Gabon / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 131 / 2.4
Guinea / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 73 / 0.8
Guinea / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 172 / 2.0
India / UNDP / DEM / HCFC / Demonstration project for development and evaluation of spray foam polyol systems for buildings using HFOs as blowing agent / 1,000 / 33.0
India / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 97 / 1.4
Kuwait / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 372 / 8.0
Kuwait / UNIDO / PHA / HCFC / FOA-XPS - HPMP - Stage I / 1,129 / 25.5
Kuwait / UNEP / PRP / HCFC / Stage 2 - HCFC Phase-out Management Plan (preparation) / 68
Kuwait / UNIDO / PRP / HCFC / FOA-Rigid PU foam - Preparation of Stage II HPMP / 86 / 0.0
Kuwait / UNIDO / PRP / HCFC / REF-Air Conditioning - Preparation of Stage II HPMP / 86 / 0.0
Kuwait / UNIDO / PRP / HCFC / REF-Servicing - Preparation of Stage II HPMP / 32 / 0.0
Marshall Islands (the) / UNEP / INS / SEV / Institutional Strengthening / 85
Mauritania / UNDP / PHA / HCFC / Stage I HPMP / 42 / 0.9
Mauritania / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 86 / 1.7
Mexico / UNIDO / INS / SEV / Institutional Strengthening / 338 / 0.0
Morocco / UNEP / INS / SEV / Institutional Strengthening / 200
Morocco / Italy / PHA / HCFC / REF-Servicing - HPMP Stage II / 150 / 1.7
Morocco / UNIDO / PHA / HCFC / REF-Servicing - HPMP Stage II / 467 / 5.0
Morocco / UNIDO / PHA / HCFC / FOA-Rigid PU foam - HPMP Stage II / 538 / 7.9
Mozambique / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 34 / 0.2
Mozambique / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 82 / 0.5
Myanmar / UNEP / INS / SEV / Institutional Strengthening / 85
Myanmar / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 21 / 0.1
Namibia / UNEP / INS / SEV / Institutional Strengthening / 85
Nauru / UNEP / INS / SEV / Institutional Strengthening / 85
Niger (the) / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 141 / 1.3
Niger (the) / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 97 / 0.9
Nigeria / UNDP / PHA / HCFC / Stage II HPMP (foam) / 545 / 8.0
Nigeria / UNDP / PHA / HCFC / Stage II HPMP (servicing) / 523 / 5.6
Nigeria / UNIDO / PHA / HCFC / REF-Manufacturing - HPMP Stage II / 1,634 / 10.0
Panama / UNDP / PHA / HCFC / HCFC-INV: Foams - HPMP Stage I / 327 / 4.8
Panama / UNEP / PHA / HCFC / Stage 2 - HCFC Phase-out Management Plan (implementation) / 22 / 0.2
Peru / UNEP / PHA / HCFC / Stage 2 - HCFC Phase-out Management Plan (implementation) / 14 / 0.3
Philippines (the) / World Bank / PHA / HCFC / REF-Air conditioning - HPMP Stage II / 789 / 5.4
Philippines (the) / World Bank / PHA / HCFC / REF-Commercial refrigeration - HPMP Stage II / 277 / 3.0
Qatar / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 170 / 4.3
Qatar / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 160 / 4.2
Saint Lucia / UNEP / INS / SEV / Institutional Strengthening / 85
Saint Vincent and the Grenadines / UNEP / INS / SEV / Institutional Strengthening / 85
Saudi Arabia / UNEP / INS / SEV / Institutional Strengthening / 256
Serbia / UNIDO / INS / SEV / Institutional Strengthening / 180 / 0.0
Serbia / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 16 / 0.0
Serbia / UNIDO / PHA / HCFC / REF-Servicing and REF-Manufacturing - HPMP - Stage I / 73 / 0.2
Somalia / UNIDO / PHA / HCFC / FOA-Rigid PU foam - HPMP - Stage I / 151 / 0.8
South Africa / UNIDO / PRP / HCFC / REF-Manufacturing - Preparation of Stage II HPMP / 161 / 0.0
South Africa / UNIDO / PRP / HCFC / REF-Servicing - Preparation of Stage II HPMP / 96 / 0.0
Suriname / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 40 / 0.1
Suriname / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 32 / 0.1
Swaziland / UNEP / INS / SEV / Institutional Strengthening / 85
The former Yugoslav Republic of Macedonia / UNIDO / PHA / HCFC / REF-Servicing, FOA & INS - HPMP - Stage I / 88 / 0.2
Timor-Leste / UNDP / PHA / HCFC / Stage I HPMP / 12 / 0.0
Timor-Leste / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 19 / 0.0
Timor-Leste / UNEP / PHA / HCFC / Stage 2 - HCFC Phase-out Management Plan (implementation) / 19 / 0.0
Togo / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 70 / 0.7
Togo / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 161 / 1.7
Trinidad and Tobago / UNDP / INS / SEV / Institutional Strengthening / 91 / 0.0
Tunisia / UNEP / PRP / HCFC / Stage 2 - HCFC Phase-out Management Plan (preparation) / 23
Turkey / Italy / PHA / HCFC / REF-Servicing - HPMP Stage II / 150 / 1.7
Turkey / UNIDO / PHA / HCFC / REF-Servicing - HPMP - Stage I / 1,711 / 52.6
Uganda / UNEP / INS / SEV / Institutional Strengthening / 85
Venezuela (Bolivarian Republic of) / Italy / PHA / HCFC / REF-Servicing - HPMP Stage II / 100 / 1.4
Yemen / UNEP / INS / SEV / Institutional Strengthening / 218
Yemen / UNEP / PHA / HCFC / HCFC Phase-out Management Plan (implementation) - Stage I / 186 / 13.2
Yemen / UNIDO / PRP / HCFC / REF-Manufacturing - Preparation of Stage II HPMP / 41 / 0.0
Yemen / UNIDO / PRP / HCFC / REF-Servicing - Preparation of Stage II HPMP / 73 / 0.0

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[1]The adjusted consolidated 2016-2018 business plan was sent to bilateral and implementing agencies on 8December 2015.

[2] All HPMPs had been included in the business plan for 2017 except Paraguay where additional stage I funding submitted for the foam sector for polyols, but subsequently withdrawn.

[3]All stage II of HPMPs had been included in the business plan for 2017 except for China (Japan) and overarching strategy (UNDP) and Mexico (Spain), and Uruguay (foam sector) that was not included at all in the business plans.

[4] These activities include: 86 HCFC activities for 42 countries (US$17.54 million) and 16 IS activities (US$2.38million).

[5]Decision XXVI/10.

[6]New contributions for the 2015-2017 replenishment amount to US$437.5million; however, the US$64million carryover includes US$48million in contributions from triennia prior to 2015.With the US$6million of interest, the expected income amounts to US$491.5million.